Richard M. Glickman announces his intention to retire as CEO next
year, upon identification and appointment of an appropriate successor

VICTORIA, British Columbia--(BUSINESS WIRE)--
Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH / TSX:AUP) (“Aurinia” or the
“Company”) has released its financial results for the third quarter
ended September 30, 2018. Amounts, unless specified otherwise, are
expressed in U.S. dollars.

“We achieved a significant milestone in September with the completion of
enrollment for the AURORA Phase III trial ahead of schedule. Our target
enrollment of 324 patients was surpassed due to high patient demand with
358 LN patients randomized in sites across 27 countries.” said Richard
M. Glickman, Aurinia’s CEO and Chairman of the Board. “I continue to be
impressed by our clinical team which has delivered on our important
milestones, and to that end, I am pleased to announce enrollment for the
phase II dry eye trial will be completed in the next couple of days, and
we expect top-line data in January 2019.”

Clinical Highlights

Our Phase III clinical trial (“AURORA”) to evaluate voclosporin for
the treatment of lupus nephritis (“LN”), which we initiated in May of
2017, completed enrollment in September 2018. We expect top-line data
to be available in late 2019.

A significant percentage of patients who have completed the AURORA
trial are rolling over into the AURORA 2 blinded extension study
(“AURORA 2”) from the AURORA Phase III clinical trial. The purpose of
AURORA 2 is to assess the long-term benefit/risk of voclosporin in
patients with LN; however, this study is not a requirement for
potential regulatory approval for voclosporin.

We initiated a Phase II head-to-head tolerability study of voclosporin
ophthalmic solution (“VOS”) versus Restasis® (cyclosporine ophthalmic
emulsion) 0.05% for the treatment of Dry Eye Syndrome (“DES”) in July
2018, and full enrollment is anticipated imminently. This four-week
study of approximately 90 patients is expected to complete by the end
of 2018 with data available in January 2019. We believe calcineurin
inhibitors (“CNIs”) are a mainstay of treatment for DES, and the goal
of this program is to develop a best-in-class treatment option.

We also initiated a Phase II proof-of-concept study in focal segmental
glomerulosclerosis (“FSGS”) in June 2018 and are currently in the
process of enrolling patients. This is an open-label study of 20
treatment naïve patients diagnosed with primary FSGS.

Corporate Development

Aurinia also announced today that Richard M. Glickman, the Company’s
Chairman and Chief Executive Officer, intends to retire from his
position once a suitable replacement is identified and appointed. The
Board of Directors will retain a search firm and initiate a search for
his successor.

“Richard is a gifted entrepreneur who has established Aurinia as a
leading biotech company and shepherded it to its next phase of growth.
On behalf of the Board of Directors, I want to thank him for his
inspired leadership and significant contribution to both the Company and
patient community since Aurinia’s inception in 2012,” said George M.
Milne Jr, Ph.D., Independent Director and Chairman of the Governance
Committee. “Under his direction, the Company has delivered on all its
key milestones and evolved into a patient-centric, late-stage clinical
company with investigational drugs addressing multiple indications
across the global immunology market.”

“Two years ago - a critical time in the company’s growth - my decision
to come out of retirement to join Aurinia as CEO was fueled by my
absolute belief in the potential for voclosporin to transform the lupus
nephritis treatment landscape,” said Dr. Glickman. “I’m incredibly proud
of Aurinia’s progress over the last 21 months, and I know this is the
optimal time to bring in a new CEO who will build on our clinical
success as we approach commercialization. My commitment to the Company
and the patients it serves is steadfast, and I plan to remain a resource
to the Board and management team as it enters its next chapter.”

Financial Liquidity at September 30, 2018

At September 30, 2018, we had cash, cash equivalents and short term
investments of $138.9 million compared to $150.2 million at June 30,
2018 and $173.5 million at December 31, 2017. Net cash used in operating
activities was $11.3 million for the third quarter ended September 30,
2018 compared to $8.5 million for the third quarter ended September 30,
2017.

We believe that our cash position is sufficient to fund our existing LN
program including the AURORA clinical trial, conduct our current studies
in FSGS and DES, complete the work required for the NDA submission to
the FDA, and fund operations into 2020.

Financial Results for the Three and Nine Months Ended September 30,
2018

We reported a consolidated net loss of $18.3 million or $0.21 per common
share for the three months ended September 30, 2018, as compared to a
consolidated net loss of $13.1 million or $0.16 per common share for the
three months ended September 30, 2017.

The increase in the loss for the three months ended September 30, 2018
compared to the same period in 2017 was primarily due to the non-cash
change of $5.2 million in the estimated fair value of derivative warrant
liabilities. The three months ended September 30, 2018 reflected a $4.8
million increase in the estimated fair value of derivative warrant
liabilities compared to a reduction of $355,000 in the estimated fair
value of derivative warrant liabilities for the three months ended
September 30, 2017. The change in the revaluation of the derivative
warrant liabilities is primarily driven by the change in our share price
at each period end. An increase in our share price results in an
increase in the estimated fair value of derivative warrant liabilities
and vice versa. The derivative warrant liabilities will ultimately be
eliminated on the exercise or forfeiture of the warrants and will not
result in any cash outlay by the Company.

The net loss before the non-cash change in estimated fair value of
derivative warrant liabilities was $13.5 million for the three months
ended September 30, 2018 compared to $13.5 million for the same period
in 2017.

For the nine months ended September 30, 2018, the consolidated net loss
was $49.5 million or $0.59 per common share compared to a consolidated
net loss of $67.5 million or $0.91 per common share for the comparable
period in 2017. For the nine months ended September 30, 2018 we recorded
an increase of $9.4 million in the estimated fair value of derivative
warrant liabilities compared to $32.9 million for the comparable period
in 2017.

The net loss before the non-cash change in estimated fair value of
derivative warrant liabilities was $40.1 million for the nine months
ended September 30, 2018 compared to $34.5 million for the same period
in 2017. The increased loss was primarily due to higher research and
development expenses.

Research and development expenses increased to $11.2 million for the
three months ended September 30, 2018, compared to $10.8 million for the
three months ended September 30, 2017. We incurred research and
development expenses of $30.5 million for the nine months ended
September 30, 2018, as compared to $25.2 million for the same period in
2017. The increased research and development expenses reflected costs
associated with the commencements of AURORA 2 and the FSGS and DES
studies.

Corporate, administration and business development expenses increased to
$2.9 million for the three months ended September 30, 2018, compared to
$2.7 million for the same period in 2017. We incurred corporate,
administration and business development expenses of $10.2 million for
the nine months ended September 30, 2018 compared to $9.0 million for
the comparable period in 2017. The increase was due primarily to higher
non-cash stock compensation expense in 2018 compared to the same periods
in 2017.

This press release should be read in conjunction with our unaudited
interim condensed consolidated financial statements and the MD&A for the
third quarter ended September 30, 2018 which are accessible on Aurinia’s
website at www.auriniapharma.com,
on SEDAR at www.sedar.com
or on EDGAR at www.sec.gov/edgar.

Aurinia will host a conference call and webcast to discuss third quarter
2018 financial results today, Thursday, November 8, 2018 at 4:30 p.m.
ET. This event can be accessed on the investor section of the Aurinia
website at www.aurinia.com.

About Aurinia

Aurinia Pharmaceuticals is a clinical stage biopharmaceutical company
focused on developing and commercializing therapies to treat targeted
patient populations that are suffering from serious diseases with a high
unmet medical need. The Company is currently developing voclosporin, an
investigational drug, for the potential treatment of lupus nephritis,
focal segmental glomerulosclerosis, and Dry Eye Syndrome. The Company is
headquartered in Victoria, British Columbia and focuses its development
efforts globally. For further information, see our website at www.auriniapharma.com.

About Voclosporin

Voclosporin, an investigational drug, is a novel and potentially
best-in-class CNI with clinical data in over 2,400 patients across
indications. Voclosporin is an immunosuppressant, with a synergistic and
dual mechanism of action. By inhibiting calcineurin, voclosporin blocks
IL-2 expression and T-cell mediated immune responses and stabilizes the
podocyte in the kidney. It has been shown to have a more predictable
pharmacokinetic and pharmacodynamic relationship (potentially requires
no therapeutic drug monitoring), an increase in potency (vs
cyclosporin), and an improved metabolic profile compared to legacy CNIs.
Aurinia anticipates that upon regulatory approval, patent protection for
voclosporin will be extended in the United States and certain other
major markets, including Europe and Japan, until at least October 2027
under the Hatch-Waxman Act and comparable laws in other countries and
until April 2028 with anticipated pediatric extension.

About VOS

VOS (voclosporin ophthalmic solution) is an aqueous, preservative free
nanomicellar solution containing 0.2% voclosporin intended for use in
the treatment of DES. Studies have been completed in rabbit and dog
models, and a single Phase I has also been completed in healthy
volunteers and patients with DES. VOS has IP protection until 2031.

About Lupus Nephritis (LN)

LN in an inflammation of the kidney caused by Systemic Lupus
Erythematosus (“SLE”) and represents a serious progression of SLE. SLE
is a chronic, complex and often disabling disorder. The disease is
highly heterogeneous, affecting a wide range of organs & tissue systems.
Unlike SLE, LN has straightforward disease outcomes (measuring
proteinuria) where an early response correlates with long-term outcomes.
In patients with LN, renal damage results in proteinuria and/or
hematuria and a decrease in renal function as evidenced by reduced
estimated glomerular filtration rate (“eGFR”), and increased serum
creatinine levels. LN is debilitating and costly and if poorly
controlled, LN can lead to permanent and irreversible tissue damage
within the kidney, resulting in end-stage renal disease (“ESRD”), thus
making LN a serious and potentially life-threatening condition.

About FSGS

FSGS is a rare disease that attacks the kidney’s filtering units
(glomeruli) causing serious scarring which leads to permanent kidney
damage and even renal failure. FSGS is one of the leading causes of
Nephrotic Syndrome (NS) and is identified by biopsy and proteinuria. NS
is a collection of signs and symptoms that indicate kidney damage,
including: large amounts of protein in urine; low levels of albumin and
higher than normal fat and cholesterol levels in the blood, and edema.
Similar to LN, early clinical response (measured by reduction of
proteinuria) is thought to be critical to long-term kidney health in
patients with FSGS. Currently, there are no approved therapies for FSGS
in the United States and the European Union.

About Dry Eye Syndrome (DES)

Dry eye syndrome (DES) is characterized by irritation and inflammation
that occurs when the eye’s tear film is compromised by reduced tear
production, imbalanced tear composition, or excessive tear evaporation.
The impact of DES ranges from subtle, yet constant eye irritation to
significant inflammation and scarring of the eye’s surface. Discomfort
and pain resulting from DES can reduce quality of life and cause
difficulty reading, driving, using computers and performing daily
activities. DES is a chronic disease. There are currently two FDA
approved therapies for the treatment of dry eye; however, there is
opportunity for potential improvement in the effectiveness by enhancing
tolerability and onset of action and alleviating the need for repetitive
dosing.

Forward-Looking Statements

Certain statements made in this press release may constitute
forward-looking information within the meaning of applicable Canadian
securities law and forward-looking statements within the meaning of
applicable United States securities law. These forward-looking
statements or information include but are not limited to statements or
information with respect to: AURORA having data in Q4 2019, completing
NDA submissions in a successful and timely manner, voclosporin being
potentially a best-in-class CNI with robust intellectual property
exclusivity, the timing of completion of the Phase II tolerability study
of VOS; and that Aurinia has sufficient financial resources to fund the
existing LN program, including the AURORA trial, and the NDA submission
to the FDA, conduct the current Phase II trials for FSGS and DES and
fund operations into 2020. It is possible that such results or
conclusions may change based on further analyses of these data. Words
such as “anticipate”, “will”, “believe”, “estimate”, “expect”, “intend”,
“target”, “plan”, “goals”, “objectives”, “may” and other similar words
and expressions, identify forward-looking statements. We have made
numerous assumptions about the forward-looking statements and
information contained herein, including among other things, assumptions
about: the market value for the LN program; that another company will
not create a substantial competitive product for Aurinia’s LN business
without violating Aurinia’s intellectual property rights; the burn rate
of Aurinia’s cash for operations; the costs and expenses associated with
Aurinia’s clinical trials; the planned studies achieving positive
results; Aurinia being able to extend its patents on terms acceptable to
Aurinia; and the size of the LN market. Even though the management of
Aurinia believes that the assumptions made, and the expectations
represented by such statements or information are reasonable, there can
be no assurance that the forward-looking information will prove to be
accurate.

Forward-looking information by their nature are based on assumptions and
involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of Aurinia to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking information.
Should one or more of these risks and uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those described in forward-looking statements or
information. Such risks, uncertainties and other factors include, among
others, the following: difficulties, delays, or failures we may
experience in the conduct of our AURORA clinical trial; difficulties we
may experience in completing the development and commercialization of
voclosporin; the market for the LN business may not be as estimated;
Aurinia may have to pay unanticipated expenses; estimated costs for
clinical trials may be underestimated, resulting in Aurinia having to
make additional expenditures to achieve its current goals; Aurinia not
being able to extend its patent portfolio for voclosporin; and
competitors may arise with similar products. Although we have attempted
to identify factors that would cause actual actions, events or results
to differ materially from those described in forward-looking statements
and information, there may be other factors that cause actual results,
performances, achievements or events to not be as anticipated, estimated
or intended. Also, many of the factors are beyond our control. There can
be no assurance that forward-looking statements or information will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, you
should not place undue reliance on forward-looking statements or
information.

Except as required by law, Aurinia will not update forward-looking
information. All forward-looking information contained in this press
release is qualified by this cautionary statement. Additional
information related to Aurinia, including a detailed list of the risks
and uncertainties affecting Aurinia and its business can be found in
Aurinia’s most recent Annual Information Form available by accessing the
Canadian Securities Administrators’ System for Electronic Document
Analysis and Retrieval (SEDAR) website at www.sedar.com
or the U.S. Securities and Exchange Commission’s Electronic Document
Gathering and Retrieval System (EDGAR) website at www.sec.gov/edgar.